Companies that control the production of virtually all of the parts that go into a product
are said to be horizontally integrated.
One principle of total quality management (TQM) is that upper management is solely
responsible for providing the leadership for quality.
Vertical integration is the degree to which a firm produces the parts that go into its
products.
Because of the development of advanced forecasting models managers no longer track
forecast error.
Movements in demand that do not follow a given pattern are referred to as random
variations.
The EOQ model determines the optimal order size that minimizes the sum of carrying
costs and shortage costs.
The demand behavior for skis is considered cyclical.
Kanbans were derived from the two-bin inventory system.
Control, one of the basic elements of a project plan, involves a set of procedures for
monitoring and evaluating progress and performance.
The quantity discount model evaluates whether using an order size that qualifies for a
price discount is always less cost effective than using the economic order quantity.
A graph that reflects the fact that repetition of tasks improves worker performance is
referred to as a learning curve.
A decision criterion in which the decision payoffs are weighted by a coefficient of
optimism is known as the Hurwicz criterion.
A process layout groups similar activities together according to the functions they
perform.
What is the optimal order quantity?
a. 100
b. 115.47
c. 200
d. 500
Easy Tax is a service company that prepares tax returns. An outside auditor has
examined 20 samples each containing one completed tax return. The total number of
defects observed over the 20 samples is 200. The LCL for the control chart constructed
using three sigma is
a. -1.6
b. 0.4
c. 3.3
d. 6.5
As a part of design for robustness, Taguchi believes that
a. consistent errors can be more easily corrected than random errors.
b. parts within tolerance limits may produce assemblies that are not within limits.
c. consumers have a strong preference for product characteristics near their ideal value.
d. All of these answer choices are correct.
A project consists of the following four activities with activity times in days:
Table CC
Which of the activities has the largest total allowable crash time?
a. A
b. B
c. C
d. D
Which of the following is the universal business language most often utilized when
managing global projects?
a. French
b. Spanish
c. English
d. Chinese
A ____________ provides historical data on the movement of parts and materials
between departments.
a. manufacturing chart
b. block diagram
c. relationship diagram
d. load summary chart
A company is evaluating which of two alternatives should be used to produce a product
that will sell for $35 per unit. The following cost information describes the two
alternatives.
The break-even volume for Process B is
a. 50,000 units.
b. 62,500 units.
c. 30,000 units.
d. 20,000 units.
A project consists of the following activities:
Table XX
The time complete the entire project is
a. 20 weeks.
b. 30 weeks.
c. 36 weeks.
d. 39 weeks.
Which of the following is not an event or concept associated with the quality
revolution?
a. TQM (total quality management)
b. Internet
c. Six Sigma
d. JIT
Which of the following is not a capital budgeting technique?
a. Revenue enhancement
b. Replacement analysis
c. Risk and uncertainty
d. All of these answer choices are correct.
Companies that purchase ___________________ over the Internet tend to do it with
suppliers with whom they have an established relationship.
a. direct products
b. indirect products
c. finished products
d. international products
An x-bar and R-chart constructed to monitor and control a process use the same raw
data.
Customer service is defined as the ability to satisfy ______________ demand.
a. internal
b. external
c. internal and external
d. None of these answer choices is correct.
Which of the following is not a principle for job enrichment?
a. provide additional authority and freedom
b. vertical job enlargement
c. make periodic reports available to workers
d. introduce simple, repetitive tasks
A type of service layout designed to encourage browsing and increase impulse
purchasing is known as a
a. freeflow layout.
b. grid layout.
c. loop layout.
d. spine layout.
If the following jobs are sequenced according to the SPT rule then the maximum job
tardiness (in days) is (assume zero for today’s date)
a. 26 days
b. 16 days
c. 10 days
d. 5.2 days
If the following jobs are sequenced according to the LPT rule then the mean tardiness
(in days) for all jobs is (assume zero for today’s date)
a. 62 days.
b. 12.4 days.
c. 15.5 days.
d. 25 days
Partnerships between customers and suppliers are beneficial because they
a) provide security and stability.
b) reduce the need for global suppliers.
c) enhance competition in the supply chain.
d) require suppliers to build facilities near the customer.
Which of the following is an objective to sales and operations planning?
a. Develop an economic strategy for meeting demand.
b. Develop a marketing strategy for meeting demand.
c. Develop an operations strategy for meeting demand.
d. None of these answer choices is correct.
______________ is a formal process of collecting, analyzing, cleansing, and classifying
spending data.
a. Spend analysis
b. Budget analysis
c. Spend classifying
d. Budget classifying
Which of the following is not an obstacle to global supply chain management?
a. increased documentation
b. differences in communication technology
c. decreased delivery times
d. different business practices
Theory of constraints is a _____________ scheduling approach that concentrates on
scheduling the bottleneck.
a. infinite
b. finite
c. genetic
d. None of these answer choices is correct.
Annual demand for a product is 40,000 units. The product is used at a constant rate over
the 365 days the company is open every year. The annual holding cost for the product is
estimated to be $2.50 per unit and the cost of placing each order is $125.00. If the
company orders according to the economic order quantity (EOQ) formula then
________ orders are placed annually.
a. 5
b. 10
c. 15
d. 20
_______ is a group technology technique that reorders part routing matrices to identify
families of parts with similar processing requirements.
a) Process flow analysis
b) Production flow analysis
c) Cycle analysis
d) Group analysis
Which mode of transportation is the most cost effective for transporting raw materials?
a) Pipeline
b) Railroad
c) Trucking
d) Intermodal
Briefly describe the four primary functional areas of a firm. How is operations related
to them?
What is simulation and why is it a popular decision-making tool?
List and discuss the seven different modes of transportation.
List and discuss the costs used to determine carrying cost, holding cost and shortage
cost.
Briefly discuss three performance characteristics considered during the functional
design phase of a product.